Core Viewpoint - LiqTech International, Inc. reported improved financial performance in Q2 2025, with revenue growth, gross margin improvement, and decreased operating expenses, driven by strong demand in swimming pool markets and other filtration systems [3][4]. Recent Financial Highlights - Q2 2025 revenue was $5.0 million, an 11% increase from $4.5 million in Q2 2024, and a 7% sequential increase from $4.6 million in Q1 2025 [4][5]. - The net loss for Q2 2025 was $(2.0) million, slightly improved from $(2.1) million in Q2 2024 [5][12]. - The ending cash balance on June 30, 2025, was $8.7 million [5][12]. - Q3 2025 revenue is expected to be between $3.8 million and $4.2 million, representing a 52% to 68% increase from Q3 2024 [5]. - Full year 2025 revenue is projected to be between $19.0 million and $20.0 million, indicating a 30% to 37% increase from 2024 [5]. Recent Operational Highlights - Six swimming pool systems were delivered in Q2 2025, generating nearly $800,000 in revenue [5]. - An order was received for an advanced membrane-based filtration system from NorthStar BlueScope Steel, with part of the revenue recognized in Q2 2025 and the remainder expected in Q3 2025 [5]. - A pilot unit was delivered to Razorback Direct for customer testing in a new industry [5]. - The ceramics and plastics segments experienced a combined sequential growth of 31% compared to Q1 2025 [5]. Management Commentary - The CEO highlighted the successful execution of strategic priorities, with strong performance in swimming pool markets and a robust order flow for the second half of the year [3]. - The company anticipates continued year-over-year revenue improvements in the latter half of 2025, aiming for the highest revenue level in four years [3]. Q2 2025 Financial Results - Gross profit for Q2 2025 was $0.5 million, with a gross profit margin of 9.8%, down from $0.7 million and 16% in Q2 2024, primarily due to underutilization of manufacturing capacity and increased provisions for slow-moving inventory [7]. - Total operating expenses decreased by 7.5% to $2.6 million compared to $2.8 million in Q2 2024 [8]. - Selling expenses decreased by 5% to $0.8 million, attributed to the release of bad debt provisions and lower depreciation [9]. - Research and development expenses decreased by 40% to $0.2 million, mainly due to one-time exit costs from a loss-making project [11].

Group 1 - LiqTech International, Inc. will report its second quarter 2025 financial results on August 13, 2025, before the market opens [1] - A conference call to review the results is scheduled for the same day at 9:00 a.m. Eastern time [2] - The conference call will be accessible via a live webcast on the company's Investor Relations website [2] Group 2 - LiqTech International, Inc. specializes in advanced ceramic silicon carbide filtration technologies for gas and liquid purification [3] - The company's products include silicon carbide membranes and filters designed for challenging purification applications, including diesel exhaust soot emissions control [3] - LiqTech utilizes nanotechnology to develop a range of filtration products, offering unique turnkey solutions for water purification [3]

Core Insights - LiqTech International, Inc. has received an order for an advanced membrane-based filtration system from North Star BlueScope Steel to treat oily wastewater [1][2] - The system is set to be commissioned in the second half of 2025 and aims to address filtration process challenges due to high oil content and variability in wastewater quality [2][3] - LiqTech's Silicon Carbide (SiC) membrane technology is designed for harsh industrial conditions, enhancing process stability and water recovery efficiency [3][4] Company Overview - LiqTech International, Inc. specializes in clean technology, manufacturing and marketing advanced filtration products for liquid and gas applications [6] - The company was founded in 2000 and its patented SiC membranes are utilized in various sectors including industrial and municipal water treatment, marine scrubbers, and oil & gas applications [6] Industry Trends - The project with North Star BlueScope Steel reflects a growing trend in the steel industry towards sustainable water management practices [5] - The addition of advanced wastewater pre-treatment filtration supports broader water reclamation initiatives within the industry [5]

Revenue and Profit - Revenue for Q1 2025 was $4,617,541, an increase of $382,197 or 9.0% compared to Q1 2024's $4,235,344, driven by liquid filtration systems and plastics sales[76] - Gross profit for Q1 2025 was $125,056, a decrease of $146,046 or 53.9% from $271,102 in Q1 2024, resulting in a gross profit margin of 2.7%[77] - Net loss for Q1 2025 was $2,358,342, a decrease of $29,953 or 1.3% from $2,388,295 in Q1 2024[83] Operating Expenses - Total operating expenses for Q1 2025 were $2,310,385, a slight decrease of $6,737 or 0.3% from $2,317,122 in Q1 2024[78] - Selling expenses increased by $200,437 or 38.7% to $718,016 in Q1 2025, primarily due to costs associated with a new joint venture[79] - General and administrative expenses decreased by $182,485 or 11.8% to $1,362,246 in Q1 2025, attributed to non-recurring costs in the prior period[80] - Research and development expenses decreased by $24,689 or 9.7% to $230,123 in Q1 2025, due to a reduction in R&D personnel[81] Cash Flow and Working Capital - Cash flows used in operating activities for Q1 2025 were $1,297,186, a favorable change of $659,516 compared to $1,956,702 in Q1 2024[89] - Cash flows provided from financing activities were $989,722 in Q1 2025, a favorable change of $1,999,159 compared to cash flows used of $1,009,437 in Q1 2024[91] - As of March 31, 2025, the company had cash of $10,447,432 and net working capital of $15,404,982, a decrease in net working capital of $331,827 from December 31, 2024[85] Revenue and Expense Recognition - Revenue recognition assessment impacts revenue and cost of sales[96] - Allowance for product warranties assessment impacts gross profit[96] - Collectability of accounts receivable assessment impacts operating expenses through bad debt adjustments[96] - Recoverability of long-lived assets assessment impacts gross profit or operating expenses through asset impairments[96] - Current and deferred income taxes recognition impacts provision for taxes[96] - Inventory valuation impacts gross profit[96] - Loss contingencies recognition impacts gross profit or operating expenses through loss contingency adjustments[96]

Company Performance - LiqTech International, Inc. reported a quarterly loss of $0.25 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.18, representing an earnings surprise of -38.89% [1] - The company posted revenues of $4.62 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.62%, compared to revenues of $4.24 million a year ago [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Movement and Outlook - LiqTech International shares have declined approximately 21.3% since the beginning of the year, while the S&P 500 has gained 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.16 on revenues of $4.7 million, and -$0.60 on revenues of $19 million for the current fiscal year [7] Industry Context - The Pollution Control industry, to which LiqTech International belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for LiqTech International is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4,600,000, a 36% sequential increase from $3,400,000 in Q4 2024 and up from $4,200,000 in Q1 2024 [5][22] - Gross margin for Q1 2025 was 2.7%, down from 6.4% in the same period last year, but improved from negative margins in Q4 2024 [24] - Net loss for the quarter was $2,400,000, consistent with the comparable period of 2024 [27] Business Line Data and Key Metrics Changes - Water Systems sales were $2,700,000, up from $1,500,000 in Q1 2024 and $1,400,000 in Q4 2024, driven by the record oil and gas order [22] - DPF and ceramic membrane sales were $1,000,000, down from $1,800,000 in Q1 2024 and slightly down from $1,100,000 in Q4 2024 [23] - Plastics revenue was $1,000,000, up from $900,000 in both Q1 2024 and Q4 2024 [23] Market Data and Key Metrics Changes - The company is seeing growth in various markets, including oil and gas, swimming pools, and plastics, with expectations for continued revenue growth in Q2 2025 [8][20] - The joint venture in China has begun to yield results, with new orders for marine scrubber units and a framework agreement for after-sales support [15][17] Company Strategy and Development Direction - The company aims to improve bottom-line profitability through better manufacturing utilization and cost-saving initiatives [8][29] - Focus on expanding in the Chinese market, particularly in marine water treatment solutions, is a key strategic direction [17][18] - The company is also enhancing its product offerings in various sectors, including lithium brine extraction and swimming pool systems [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the order pipeline, indicating continuous improvement across various segments [35] - The company anticipates revenue for Q2 2025 to be between $4,800,000 and $5,200,000, reflecting a sequential increase [20][22] - Management emphasized the importance of sustainable cash flow generation and long-term value creation [32] Other Important Information - The company has implemented a comprehensive cost reduction strategy aimed at lowering the breakeven target to $5,500,000 to $6,000,000 in quarterly revenue [27] - Cash balance at the end of Q1 2025 was $10,500,000, down from $10,900,000 at the end of December 2024 [28] Q&A Session Summary Question: Can you talk about your order pipeline? Is it improved, deteriorated or it stayed the same since your last call on March 28? - Management indicated that the order pipeline is continuously improving, with broad-based growth across marine, pool, and water energy segments [35] Question: Can you talk about which segments? How do you see sales trending sequentially in Q3 and Q4 of this year? - Management expects growth across all segments in Q2, with additional large projects anticipated in Q3 and Q4 [36] Question: Is there more competition in silicon carbide technology? - Management acknowledged competition from various regions, including France, Germany, and China, but emphasized superior performance compared to competitors [41][43] Question: Will all the cost savings initiatives be in full effect in the second quarter? - Management confirmed that cost savings initiatives will be fully implemented in Q2, with operating expenses expected to be slightly lower than Q1 [44] Question: How much more performance data is needed for the lithium brine pilot? - Management stated that additional data is needed for both the lithium brine and oil and gas pilots, with positive expectations for moving to the next phase [46][47] Question: Is the aftermarket agreement in China servicing only your own systems or competitor systems as well? - Management clarified that the focus is on servicing their own systems, as it is more straightforward and profitable [49]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4,600,000, a 36% sequential increase from $3,400,000 in Q4 2024 and up from $4,200,000 in Q1 2024 [5][22] - Gross margin for Q1 2025 was 2.7%, down from 6.4% in the same period last year, but improved from negative margins in Q4 2024 [24][28] - Net loss for the quarter was $2,400,000, consistent with the loss in Q1 2024 [28] Business Line Data and Key Metrics Changes - Water Systems sales were $2,700,000, up from $1,500,000 in Q1 2024 and $1,400,000 in Q4 2024, driven by a record commercial oil and gas order [22][23] - DPF and ceramic membrane sales were $1,000,000, down from $1,800,000 in Q1 2024 and slightly down from $1,100,000 in Q4 2024 [23] - Plastics revenue was $1,000,000, up from $900,000 in both Q1 2024 and Q4 2024 [23] Market Data and Key Metrics Changes - The company is seeing growth in various markets, including swimming pools, DPFs, and plastics, with expectations for continued revenue growth in Q2 2025 [7][20] - The joint venture in China has gained traction with new orders and a framework agreement for after-sales support, indicating a positive outlook for the marine water treatment market [15][16] Company Strategy and Development Direction - The company aims to improve bottom-line profitability through better manufacturing utilization and cost-saving initiatives, targeting a revenue breakeven of $5,500,000 to $6,000,000 [28][30] - The focus remains on expanding in key markets such as oil and gas, swimming pools, and plastics, with a diversified revenue stream expected in Q2 2025 [20][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the order pipeline, indicating continuous improvement across various segments [36] - The company is committed to sustainable cash flow generation and long-term value creation, with expectations for further growth in Q2 2025 [33][34] Other Important Information - The company has implemented a comprehensive cost reduction strategy aimed at lowering the breakeven target, which is a significant improvement from previous targets [28] - The joint venture partner contributed $1,200,000 in cash, which is recognized on the consolidated balance sheet [28] Q&A Session Summary Question: Can you talk about your order pipeline? - Management indicated that the order pipeline is continuously improving, with broad-based growth across marine, pool, and water energy segments [36] Question: How do you see sales trending sequentially in Q3 and Q4? - Management expects growth across all segments, with one or two large projects also anticipated [37] Question: Is there competition in silicon carbide technology? - Management acknowledged competition from various regions, including France, Germany, and China, but emphasized the superior performance of their products [40][42] Question: Will all cost savings initiatives be in full effect in Q2? - Management confirmed that cost savings initiatives will be fully implemented, with operating expenses expected to be slightly lower than Q1 [44] Question: How much more performance data is needed for the lithium brine pilot? - Management stated that the pilot is gathering data for the next phase of the commercial project, with positive expectations for both lithium brine and oil and gas pilots [46][47] Question: Is the aftermarket agreement in China servicing only your systems? - Management clarified that the focus is on servicing their own systems, with potential for future expansion to competitor systems [49]

Core Viewpoint - LiqTech International, Inc. reported strong financial results for Q1 2025, with a significant sequential revenue growth driven by a record commercial order in the oil and gas sector and ongoing projects in various markets, including a joint venture in China [4][5][6]. Recent Financial Highlights - Q1 2025 revenue was $4.6 million, a 36% increase from $3.4 million in Q4 2024 and a 9% increase from $4.2 million in Q1 2024 [5][7]. - The company expects Q2 2025 revenue to be between $4.8 million and $5.2 million, representing a 4% to 13% sequential increase and a 7% to 16% year-over-year improvement from Q2 2024 [2]. Recent Operational Highlights - A record commercial order for PureFlow™ Mobile Units was delivered to the oil and gas industry, contributing to a 36% sequential revenue growth [4]. - The company has multiple pilot and commercial projects underway, including lithium brine production and oil and gas water treatment [4][6]. - A joint venture with Jiangsu JiTRI Marine Equipment Co., Ltd. was established, leading to two marine scrubber orders and a new framework agreement for aftersales support [4][6]. Management Commentary - The CEO highlighted the successful delivery of a record order and the positive outlook for Q2 2025 based on good sales development across various products [4]. - The company is seeing a ramp-up in DPF order intakes, swimming pool systems orders, and growth in plastics, which are expected to drive further revenue growth [4]. Financial Results Overview - Gross profit for Q1 2025 was $0.1 million, with a gross profit margin of 2.7%, down from $0.3 million and 6.4% in Q1 2024, primarily due to low margins on the full-scale liquid filtration system [8]. - Total operating expenses for Q1 2025 were $2.3 million, consistent with the same period in 2024 [9]. - The net loss for Q1 2025 was $(2.4) million, unchanged from Q1 2024 [13]. Balance Sheet Highlights - As of March 31, 2025, the company had a cash balance of $10.4 million and total assets of $32.57 million [21][24]. - Total liabilities were $17.5 million, with stockholders' equity at $15.06 million [23][24].

BALLERUP, Denmark, May 13, 2025 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high- tech filtration technology company, today announced a distribution and partnership agreement with NAF Aquatics LLC for the U.S. commercial swimming pool market. The agreement includes the full PurePool™ product range and marks LiqTech's first major step in its strategic expansion into the U.S. LiqTech received NSF certification for its pool filtration system in the U.S. in August 2024. This milestone supports ...

Group 1 - LiqTech International, Inc. will report its first quarter 2025 financial results on May 14, 2025, before the market opens [1] - A conference call to review the results is scheduled for the same day at 9:00 a.m. Eastern time [1][2] - The conference call can be accessed via phone or a live webcast on the company's website [2] Group 2 - LiqTech International, Inc. specializes in high-tech filtration products and systems, particularly ceramic silicon carbide filtration technologies for gas and liquid purification [4] - The company's silicon carbide membranes are designed for challenging purification applications, including controlling diesel exhaust soot emissions [4] - LiqTech utilizes nanotechnology to develop a range of filtration products, offering unique turnkey solutions for water purification [4]